Things to Know Before Applying For a Home Loan
Pay All Your Bills on Time When applying for a House Loan Dubai, it’s important you have a good credit history, which includes paying all your bills on time, every time. A late payment may negatively affect your credit score, and that can play a part in whether you’re approved for financing and ultimately, the rate and term you may receive. Even after your home loan closes, it’s still important to pay your bills on time, as this could affect your ability to apply for future loans. Be Wary of Employment Changes A stable employment history is important when preparing to buy a home. After all, you have to show that you have the stability and continuity of income to repay the loan. “Requirements may vary based on the type of employment you have, but for most salaried borrowers, there is no specific time on the job required,” Let’s say Bill, Executive Vice President of Capital Markets at XYZ company. “Lenders will review a two-year work history, which includes consideration for education or military experience.”
Based on your situation, you may be asked to provide additional work history and income information. There are a variety of income situations and your lender will be able to share with you what is and what is not an acceptable form of income. Do Your Own Research With so many home loan options available, it may be difficult to determine the one that’s right for you. It’s important that you learn the basics about a flat rate, reducing rate and Islamic and conventional home loans. It’s also a good idea to research any fees associated with your loan, and you may also want to check your credit report to know where you stand with the credit bureaus. See What You Can Afford After you’ve taken the time to do your own research, it’s time to see how much you can afford to spend on a home. The Mortgage Calculator by Compare 4 Benefit allows you to pull in real numbers using different scenarios and today’s mortgage loans rates.
Every situation is different. You may have costs in your monthly budget that affect your bottom line, such as childcare, car payments or student loans – the important thing is to find a monthly payment that you’re comfortable with. Choose Carefully Just as it’s important to research all your loan options, it’s also important to spend a little time looking into potential lenders as well. “Most people start the conversation with, ‘What’s your rate?’”. “That question has obvious merit, but it’s completely the wrong way to find the lender you want and the financing you need. You will spend 30 days in process to get a mortgage and 30 years making payments on it.”
Here are some things to keep in mind when looking for a lender: • A sense of understanding of the loan options available • What options are available in rates, points and fees (there’s more than one rate)
Published on Mar 11, 2018
Published on Mar 11, 2018
When applying for a House Loan Dubai, it’s important you have a good credit history, which includes paying all your bills on time, every tim...